6 Steps to Successfully File Returns Without Form 16

Form 16 is a TDS certificate issued by employers to outline the salary earned and TDS deducted on the same in a given fiscal year. However, sometimes there may be delays in issuing Form 16, while some individuals like freelancers and consultants may not receive Form 16 since they have multiple sources of income. While filing your ITR without this essential document can seem challenging, the process is relatively simple. We have summed up the steps to successfully filing returns without Form 16 in this article below.

A step-by-step guide on filing returns without Form 16

If the tax season is around the corner and your employer still hasn't issued Form 16, you can still file your taxes using the following steps:

Collect your pay slips

To accurately report your income without Form 16, you need to first gather your salary slips for the relevant fiscal year. Your salary slips will outline details about your total income as well as various deductions. You can see the breakdown of your salary and the specifics of your taxable income on the pay slips. If you switched jobs, remember to include payslips from your previous employer as well while computing your total income.

Download Form 26AS

Form 26AS is a consolidated tax statement that sums up details about the tax collected and deposited against your PAN. Download Form 26AS from the Income Tax Department's e-filing portal and verify the TDS deducted. If there is a discrepancy between the amount of TDS to be deducted and the amount actually deducted, contact your employer to rectify the error.

Calculate your total income

Compute your total annual income by adding up your salary earnings to income from other sources like interest earned on savings accounts, interest on bank and NBFC FDs, rental income from property ownership, business income, capital gains from sale or transfer of capital assets, dividends, etc.

Claim applicable deductions

Once your gross total income is determined, you need to understand the eligible deduction that can be claimed under various sections of the IT Act. For instance, if you have invested in tax-saving instruments like PPF, ELSS, and NSC, you can claim deductions of up to Rs. 1.5 Lakhs u/s 80(C). Similarly, you can also claim deductions on health insurance premiums u/s 80(D). You can also claim deductions of up to Rs. 2 Lakhs on home loan interest payments. However, you must have valid documents to prove each deduction claimed.

Determine your tax liability and pay the dues

Subtract all exemptions and deductions from your gross income which includes your salary as well as income from other sources to determine your tax liability for the given fiscal year. Once you arrive at your total taxable income, use the prevailing income tax rates to identify your tax slab and calculate your tax liability. If the TDS deducted is less than the total tax payment you owe, pay the tax dues online before filing your ITR.

File and verify your ITR

Log into the e-filing portal with your credentials and fill in the appropriate ITR form depending on the source of income. After successfully filing your ITR you must e-verify the returns online via Aadhaar OTP or send a signed physical copy to CPC Bangalore within the next 30 days.

Conclusion

To efficiently file your ITR without Form 16, you can rely on your salary slips and Form 26AS to compute your total income and tax deducted. Once you arrive at the total taxable income after adding income from all sources and subtracting applicable deductions and exemptions. If you have outstanding dues, pay them first and then file your ITR. With the step-by-step guide outlined above, you can file your income tax returns even without Form 16 as easily as you would shop at an online marketplace.